Navigation Links
Health Capital Group Warns of Fallout to Hospitals From the Subprime Mortgage Crisis and Urges Hospitals to Immediately Reassess Existing Debt Structures and Capital Financing Plans
Date:1/25/2008

CHICAGO, Jan. 25 /PRNewswire/ -- James Unland, President of the Chicago-based Health Capital Group, urged hospitals' top managements and boards to take a hard look at their existing debt instruments, their obligations and their capital and debt planning in light of recent capital market developments.

Problems with some major banks and bond insurers have already affected the hospital bond markets and are expected to do so for some time to come, resulting in both debt pricing and access to capital challenges for many hospitals. Numerous hospitals have used one form or another of variable rate and/or interim bond financing, including tax-exempt short and medium maturity paper of one kind or another, often backed up by bank letters of credit, bond insurance or both. Bond insurance has also backed some longer term hospital debt.

"The feds' lowering of a key interest rate this week and moves by Congress and the President are not going to remove some fundamental and very serious problems in the financial sector, problems resulting from billions of dollars of essentially unsound home mortgage loans that were then repackaged and sold as securities with inadequate due diligence by some key market gatekeepers," said Unland. "Some people, including myself, believe that much of the federal government's action is more along the lines of 'feel good' political moves than truly corrective of the underlying dysfunctions and could, in fact, backfire in the form of markedly higher inflation down the road."

He urged hospitals to involve their key board members and to step back and think about the essence of what creates value, viability and stability in their important community service businesses.

"My message to hospitals: be objective, seek a wide range of advice, and think longer term. Don't be afraid to consider more conservative financing mechanisms such as fixed rate term debt even though exotic variable rate instruments have been the rage," added Unland. "The ability of hospitals to budget dependably amidst what I believe to be strong medium and longer term inflationary pressures is a benefit that needs to be taken into account both with respect to a hospital's existing capital structure and with respect to its future capital planning."


'/>"/>
SOURCE Health Capital Group
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Diabetes Health Toll Hits $174 Billion Annually
2. Telephone Nursing an Important Component of Managed Healthcare
3. AARP Urges Senate to Move Forward on Health Care Reform
4. Emory Healthcare Uses SciHealth to Improve Patient Satisfaction
5. Mayo Clinic, Microsoft Announce Strategic Agreement to Develop Consumer Health Management Tools
6. NCAE Encourages Minority Youth and Their Families to Go-for Health and Fitness
7. Eating Healthy in the New Year? American Express Tastemakers Dish on the Top San Francisco Restaurants for Grabbing a Healthy Bite
8. inVentiv Health to Announce Fourth Quarter and Full Year 2007 Results and Conduct Conference Call on Thursday, February 28th
9. Global Health and Business Leaders Announce 36-Month Effort to Expand Malaria Control in Africa; 3.5 Million Lives Could be Saved in Five Years, Study Finds
10. OPKO Health Announces Changes to Board of Directors
11. Report: Too Few Physicians, Nurses to Implement Presidential Candidates Health Reform Plans
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... ... October 13, 2017 , ... Dickinson ... offers insurance and financial preparation services, is providing an update on a charitable ... , Rock City Rescue is a locally recognized nonprofit that provides shelter and ...
(Date:10/13/2017)... Nevada (PRWEB) , ... October 13, 2017 , ... ... Hemp CBD Oil utilizing Purzorb™ technology. Applying the Purzorb™process to full spectrum CBD oil ... required and providing a CBD form that can be easily incorporated into liquid products, ...
(Date:10/13/2017)... , ... October 13, 2017 , ... The Visiting Nurse ... Market. Featuring a collection of specialty vendors and unique items from across the nation, ... quality-focused health and wellness services offered by the VNA. The boutique will be ...
(Date:10/13/2017)... ... October 13, 2017 , ... Coveros, a leader in agile ... a contract by the Center for Medicare and Medicaid Services (CMS). The Enterprise ... use of Agile methodologies in a consistent and high value manner across CMS ...
(Date:10/12/2017)... ... October 12, 2017 , ... Planet Fitness, one of the largest and fastest ... to open a flagship location in Covington, LA at 401 N. U.S. Highway 190, ... next to Office Depot in the Holiday Square shopping center. Its location allows it ...
Breaking Medicine News(10 mins):
(Date:10/10/2017)... , Oct. 10, 2017   West Pharmaceutical Services, ... solutions for injectable drug administration, today shared the results ... Adapter for improving the intradermal administration of polio vaccines. ... Vaccination Summit in May 2017 by Dr. Ondrej ... Department, World Health Organization (WHO), and recently published in ...
(Date:10/4/2017)... , Oct. 4, 2017 ... single-use, self-contained, illuminating medical devices, today announced regulatory ... Health Surveillance Agency (or Agência Nacional de Vigilância ... first single-use, cordless surgical retractor with integrated LED ... optimal access, illumination and exposure of a tissue ...
(Date:10/2/2017)... The Rebound mobile app is poised to become a vital ... prescription drug addiction. The app empowers users to develop an ... their dosage in a safe, controlled manner while maximizing well-being. ... 100,000 people to sign up will enjoy 3 months of ... ...
Breaking Medicine Technology: